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Altamirano PLLC has filed a $2.2 million FINRA arbitration claim with the Financial Industry Regulatory Authority (“FINRA”) against Great Point Capital, LLC, which acted as a broker-dealer in the sale of these investments, on behalf of a retired New York investor.
The claim involves the recommendation and sale of Delaware Statutory Trust (“DST”) investments, including offerings sponsored by Inspired Healthcare Capital (“IHC”). The arbitration seeks recovery of damages arising from the recommendation of a highly concentrated investment strategy involving illiquid alternative investments. Multiple investors have been affected by similar DST investment issues and are pursuing claims.
Overview of the Claim Against Great Point Capital
Inspired Healthcare Capital (“IHC”) offered a diverse array of investment vehicles designed to appeal to a broad spectrum of investors, particularly retail and conservative investors seeking stable returns. Among the most prominent options are private placement investments, Delaware Statutory Trusts (“DSTs”), and specialized funds such as the Healthcare Capital Income Fund and the Healthcare Capital Liquidity Fund. These products were frequently promoted by financial advisors and brokerage firms as secure, income-generating opportunities, often highlighting their connection to senior living and healthcare real estate. Despite these assurances, many investors are not fully aware of the significant risks associated with these offerings.
Investor Risks and Recovery Options in IHC-Sponsored DSTs
DSTs are alternative investments often marketed to investors seeking passive real estate exposure and, in some cases, tax deferral through Section 1031 exchanges. While DSTs are frequently promoted as income-producing real estate investments, they are typically illiquid, complex, and subject to risks that may not be readily apparent to retail investors. Private placements like those offered by IHC often lack transparency and carry limited investor protections compared to public securities.
In mid-2025, IHC announced that it had suspended investor distributions across its DST programs while undergoing a review by the SEC and exploring strategic alternatives. Since that time, investors in IHC-sponsored DSTs have faced ongoing uncertainty regarding when distributions may resume and the safety of their principal. The company’s financial condition has come under scrutiny, as reports indicate that only 10 to 15 out of IHC’s 35 senior living properties were performing well, raising concerns about its financial health.
Altamirano PLLC has been actively monitoring developments involving IHC and has published ongoing commentary regarding the suspension of distributions and related issues affecting investors. You can read more our analysis on IHC DST developments in our IHC investigations page. Investors should be aware of potential recovery options, including pursuing claims through arbitration proceedings. High commissions may incentivize investment advisors to recommend private placements despite their risks, and investors may be exposed to unnecessary risks when advisors fail to properly evaluate client suitability.
Commonly Asked Question
What if I signed paperwork that disclosed risks, do I still have a case?
Brokerage Firms’ DST Recommendations
The investment losses experienced by many investors in IHC offerings can be traced to several interrelated causes. A primary issue was the lack of transparency and insufficient disclosure by both the company and the financial advisors who recommended these products. Another major contributing factor was the failure of financial advisors and brokerage firms to conduct adequate due diligence before recommending these investments. In many cases, the pursuit of high commissions took precedence over a thorough assessment of the suitability of these products for individual investors.
The claim reflects broader concerns regarding the recommendation of illiquid DSTs to retail investors, including conservative retirees and income-seeking investors, without adequate consideration of risks, liquidity, and overall exposure. A significant chunk of retirement savings was entrusted to these investments, resulting in substantial losses for many investors.
Altamirano PLLC has represented investors nationwide in complex securities arbitration matters. The firm believes these products are frequently sold without adequate explanation of their structural risks, liquidity limitations, and sponsor-related conflicts. Our investment loss lawyers continue to investigate claims involving broker-dealers’ DST recommendations, including those tied to senior housing, healthcare real estate, and Section 1031 exchange strategies.
Have Questions About the IHC DST Arbitration? Speak to an Attorney at Altamirano PLLC
Altamirano PLLC has handled numerous FINRA arbitration matters involving illiquid products and alternative investments. If you invested in an IHC DST or an IHC Income Fund and have experienced suspended distributions, contact Jorge Altamirano, Principal of Altamirano PLLC, to speak with an experienced securities arbitration lawyer. Email [email protected] or contact us to schedule a free consultation.
Jorge Altamirano has handled more than 1,500 investor cases, with total claims exceeding $200 million, and has recovered millions of dollars for clients nationwide. His practice focuses on representing harmed investors in FINRA arbitration proceedings against broker-dealers and financial institutions.
